Expert of the editorial board Cntralasia.News Yuri Aronsky described how Turkmenistan's foresight has minimized the negative impact of the global pandemic on the country's economy. Experts note that such an effect was achieved through the development of industry, attracting investment, and the presence of savings in GDP.
The crisis phenomena in the economy as a result of the global pandemic did not bypass almost any state, however, due to the foresight of the Turkmen leadership, The impact of the global crisis on the country's economy was minimized. The high percentage of savings in GDP, ensured since the first years of independence, played an important role here. Such a policy can be afforded by those developing countries that have a sufficient level of income. Diversification of the economy and reduction of the influence of the oil and gas sector are of great help in this direction. This makes the national economy more sustainable and allows it to rebuild from a resource economy to an industrial resource economy. At the same time, such transformation requires considerable funds, at the expense of which both new enterprises and the whole industries are created.
And among the shortcomings of such a policy is the focus of available funds on economic growth and the successful development of the country, rather than on improving the current level of well-being of the people. Turkmenistan, in pursuing this policy, has the opportunity to Maintain sustainable development and economic growth even in the event of a global economic crisis.
The crisis phenomena caused by the pandemic have not passed over a number of industries in Turkmenistan. Tourism and hospitality, as well as transport and a number of other sectors suffered from restrictions related to COVID-19 prophylaxis. In the transport sector, passenger air transportation took the biggest hit. Decline in demand for products of the oil and gas industry, as well as a decrease in their value, had a negative impact on the foreign exchange market, resulting in a number of restrictions.
However, in 2020 Turkmenistan succeeded in to attract $38 billion in new investment into the economyas well as to ensure new jobs for 12,000 people. The uninterrupted industrial production and high rate of private sector development also had a positive effect. Another factor in stability has been the state's comprehensive digitalization.
Although there is still work to be done in the Turkmen economy, the transition to a full-fledged market has already begun. The country will have to switch from a fixed to a floating exchange rate, enter the national stock exchange, ensure equal access to foreign exchange resources for all, as well as evaluate all private and state enterprises with their subsequent corporatization. At the moment, a number of these issues are already being studied and gradually begin to be implemented in practice.